Arellano's Fruit Market & Farm

Immigrant Farmers

From Arellano's Fresh Fruit Market stand, the 50 acres of apples, peaches, blueberries and a diverse selection of other fruits and vegetables entices even the most casual drive-by passengers, many en route to vacation homes or recreational activities on Lake Michigan just two miles from the 60 acre farm. The fruit stand is located in front of farmers Armando and Genoveva Arellano's home in Covert, Michigan. Some might say the Arellanos became farmers by accident. But to the astute observer, their jammed-packed farm stand is a well-served reward for their interest in continuing their Mexican farming traditions and those of the previous owner-farmer. Arellano's products are also sold to Michigan grocery stores, Hispanic supermarkets in Chicago, and even -- through a food broker in Chicago -- to McDonald's restaurants.

Since June, 2003, Arellano's Fresh Fruit Market and Farm has overflowed with blueberries, apples, peaches and a wide selection of vegetables. Besides selling direct to customers at the farm stand, Armando has experimented with wholesale sales through various Hispanic supermarkets in Chicago as well as to food distributors and processors, some of which have purchased about 300 bushels of his Empire apples for sale to McDonald's restaurants for their Apple Dippers.

While about 60 percent of Arellano's Farm's sales are derived from their apples and peaches, it's diversified to include cultivars of blueberries, grapes, strawberries, cherries, plums, nectarines, and numerous vegetables that ripen at various times of the year. Armando makes two trips a week into Chicago for deliveries, and to knock on a few doors to drum up more business.

"It's not easy, getting started out," admits Armando. "I didn't know anyone. I came without any connections to our community." While no stranger to farming -- having grown up on a farm in Zacatecas, Mexico -- Armando's start in farming in the U.S. resulted from a chance meeting with an investor he initially approached for capital to start a bakery, drawing from his twenty-one years as a baker for companies in Elk Grove Village, Illinois, and California. The investor, instead, encouraged Armando to visit a third generation farm owned by an aging Jerry Sarno, and look into securing a $300,000 low interest loan from the USDA through the Farm Service Agency (FSA) to launch his operations. "Mr. Sarno asked if my intent was to take care of the farm and keep farming on the land," shares Armando. "I said I was. Then he had to wait eleven months for me to receive the approved FSA loan before selling me the farm."

"It's the dream of my life to live with my family in the country," continues Armando. "I grew up on the farm and was always around my father. He taught me how to work the land." Armando's entrepreneurial foray into farm ownership and farming reflects a national trend and the swelling number of Hispanics rising above "migrant worker" status to become their own boss and own their farm. An increasing number of Hispanic farmers have become the principal operators of their farms, up 51 percent from 1997 to 2002 according to the USDA NASS Census of Agriculture. They now account for 50,592 operators.

Armando has devised a risk-management strategy that involves selling some surplus fruit or vegetables to food processors, minimizing any possible financial loss for the harvest from unsold products. "I have to manage my transportation costs, both the time and distance, as well as deal with the traffic," says Armando about his regular deliveries into Chicago. "I'm knocking on doors regularly and let the produce buyers from the grocery stores try my quality products. I leave samples with them. Orders almost always follow."

Armando recognizes what's needed to make a successful go of it: "If I work hard for two or three more years, I'll get there. I'll have enough sales to cover all expenses and pay out salaries for myself and other employees." He adds, "I see a lot of future potential for the land and I always want to take care of the farm."

Not content to maintain the status quo for long, Armando has grand visions to move more of his sales into retail. His Arellano's Fresh Fruit Market already specializes in a lot more than fresh fruit. Quickly recognizing the burgeoning Hispanic population in his area, he's stocking his shelves with Mexican or other ethnic products that meet local needs, like piñatas and Mexican candies.

"The money is in retail," explains Armando. "I'm planning to build a rodeo arena for bull riding competitions. I'll rent the bulls for the rodeo and plan on attracting more than two hundred visitors for the day." Already four rodeos are scheduled for June, July, August and September of 2005. Armando has seized on the growing popularity of agri-tourism to help attract visitors to his farm and foster greater sales of his fruits and vegetables. That he already has five quarter horses parading around the farm doesn't hurt the attraction either. Armando continues to diversify is operations, with future plans that also include breeding the horses and renting out the stables to other horse owners.